Oliver Hyams and Amy Held investigate the recent case of Islandsbanki Hf & Ors v Stanford [2020] EWCA Civ 480.

Background

Urteilsanmerkung zu BFH, Urteil vom 22.10.2019 – VII R 30/18

As the world economy struggles to cope with the impact of the COVID-19 pandemic, many companies and other creditors are exploring options to manage non-collectible debts. However, the tax costs and consequences of different approaches to settling debts are often overlooked when they should be key considerations, and unwary creditors are at risk of unexpected surprises. This article will analyze some common debt settlement options and their tax consequences.

Debt Offset

Desde el pasado 23 de marzo, con esta newsletter en Garrigues hemos hecho un esfuerzo por acercaros aquellos temas regulatorios de los que semana a semana las empresas teníais que estar más pendientes desde todas las áreas de práctica del derecho de los negocios. Dado que el estado de alarma toca a su fin en unos pocos días, esta será la última entrega de una publicación que esperamos haya cumplido su función. A partir de ahora, os seguiremos manteniendo informados a través de nuestros formatos habituales de Alertas, Comentarios, Perspectivas o Newsletters.

面对疫情所造成的严重冗员和经营危机，部分公司可能最终不得不选择提前关闭。针对提 前解散牵涉的两个重要方面，即员工遣散以及后续清算，我们在本文中从劳动法和公

To tackle the Covid-19 pandemic crisis, three new measures to strengthen the liquidity and solvency of businesses in Belgium were submitted to the federal parliament in a draft bill on 5 June 2020.

1° Anticipated tax deduction of losses (individual income tax and non-resident individual income tax)

What is it about?

The taxable result generated in income year 2019 (tax assessment year 2020) can be exempt from tax up to the (estimated) professional losses to be suffered in income year 2020 (tax assessment year 2021).

Status as of 16/09       

Table of Content

This quick guide summarises the duties that directors of companies incorporated in England and Wales are subject to, and how those duties change when the company is insolvent or at risk of being insolvent. It also provides an overview of the personal risk to directors when the company is in financial difficulty.

This note is intended as an overview and should not be relied on as legal advice. Should you require legal advice in relation to your specific circumstances, please contact the Restructuring & Insolvency team members whose contact details are at the end of this note.

The COVID-19 restrictions are slowly easing but the economic impacts are far from over. While businesses struggle to find ways to free up cash, it is likely we will see restructuring of loans and waiving of debts.

Taxpayers and their advisors need to be aware of the taxation implications of restructuring and forgiving loans, including the Commercial Debt Forgiveness (CDF) rules, Division 7A and the CGT rules.

Key takeaway

COVID-19 has had a debilitating effect on many sectors of the economy and unfortunately, the coming 12 months will see more businesses in financial distress and an uptick in business insolvency.

In such an environment, the commercial reality is that many businesses will be owed debts that will not be paid in full or at all. For many businesses, this could spell disaster. For this reason, debtor management is crucial in the present environment.